Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
515.0000 SERVICE ENTERPRISES GENERALLY—Regulation 1501
(a) IN GENERAL—SERVICE DISTINGUISHED FROM SALE
515.0040 "True Object of Transaction" Test. The basic distinction in determining whether a particular transaction involves a "sale" or a "service" is one of true object of contract; i.e., is the real object sought by the buyer the "service" per se, or the finished article produced by the service? If the true object of the contract is the service per se, the transactions would be nontaxable even though some tangible personal property is transferred. 5/4/65.